Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.
Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.
Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.
Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.
So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.
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Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.
One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.
The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.
Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.
Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.
Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.
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Crypto firms operating in the United Kingdom will be required to report detailed customer transaction data from 1 January 2026. The move is part of the government’s wider plan to improve tax transparency in the crypto sector by aligning with international reporting standards.
Firms must collect and submit information on each transaction, including the user’s name, address, tax ID, the crypto used, and the amount transferred. Transactions involving companies, trusts, and charities must also be reported.
Penalties of up to £300 per user may apply for non-compliance or incorrect reporting.
The measures are part of the UK’s adoption of the OECD’s Cryptoasset Reporting Framework, aiming to support innovation while reducing fraud and abuse. Authorities have urged firms to begin gathering data now, although full guidance will be issued later.
While the UK’s approach focuses on integrating crypto into existing regulations, it differs from the EU’s MiCA rules. Unlike the EU, the UK will not require foreign stablecoin issuers to register or limit their transaction volumes.
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Bitcoin has emerged as Russia’s top-performing investment over the past year, beating out gold, stocks, and bonds, according to the Central Bank of Russia. The report shows that Bitcoin generated a 38% return over 12 months, placing it ahead of all other assets evaluated.
Despite a sharp dip of 18.6% between January and April 2025, Bitcoin recovered strongly in April with an 11.2% gain. It regained the top spot while traditional markets struggled.
Over the longer term, Bitcoin delivered a cumulative return of 121.3% since 2022—far outpacing other asset classes, including the S&P 500.
The bank’s findings reflect Bitcoin’s shift from a niche speculation to a serious contender in global finance. Bitcoin’s rise from under $20,000 to nearly $110,000 was driven by regulation, adoption, and political backing.
Donald Trump’s pro-crypto stance has helped drive this momentum, with several governments and firms now eyeing Bitcoin as a potential reserve asset or financial tool.
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Mastercard is expanding its digital asset services through a new collaboration with MoonPay to simplify stablecoin payments worldwide. The partnership will let 150 million businesses accept stablecoin payments, advancing Mastercard’s push to mainstream cryptocurrency.
Central to this initiative is MoonPay’s Iron technology, which offers stablecoin payment APIs. These allow merchants and fintech companies to quickly add crypto payment options using virtual Mastercards.
MoonPay, acquired by Mastercard earlier this year, aims to boost stablecoin adoption by making crypto payments as easy as traditional card transactions.
Stablecoins have grown into a $245 billion market, with transfer volumes in 2024 reaching $27.6 trillion—surpassing combined Visa and Mastercard transactions.
Meanwhile, regulatory progress continues in the US, where Congress considers two bills aimed at stabilising the stablecoin market. Despite ongoing classification uncertainties, recent regulatory actions suggest growing acceptance of the sector.
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Pi Network has launched a $100 million venture fund to boost its ecosystem and promote real-world adoption of its crypto. The fund, named Pi Network Ventures, aims to invest in startups that integrate Pi tokens or use Pi Network technology.
It targets a broad range of sectors including generative AI, gaming, fintech, ecommerce, payments, marketplaces, and social networks.
Operating like a traditional Silicon Valley venture capital firm, the fund will follow standard sourcing, selection, and vetting processes. Investments will cover startups at all stages, from early seed rounds to later Series B and beyond.
However, unlike most funds focused solely on profit, Pi Network Ventures emphasises value creation and ecosystem utility.
The initiative aims to drive demand for the Pi token by supporting projects that add real-world value and foster innovation. Pi Network hopes to expand its reach beyond purely crypto-native companies and grow adoption across multiple industries.
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Tether challenges Big Tech’s AI control with QVAC, a platform that runs AI agents on personal devices. Unlike traditional AI using centralised data centres, QVAC runs directly on devices like smartphones and brain-computer interfaces.
The company plans to release an open-source software development kit later this year to support developers.
Named after the AI in Isaac Asimov’s 1956 story The Last Question, QVAC aims to create a decentralised AI ecosystem. Tether’s CEO Paolo Ardoino said the platform gives users control over their data and computation, not large corporations.
The system can potentially support trillions of AI agents functioning autonomously and transacting in Bitcoin and USDT.
Tether positions QVAC as a framework to break the centralised dominance of tech giants such as Google and Meta.
The release date and price are unknown, but Ardoino says QVAC aims to be an ‘infinite intelligence platform’ that runs independently, boosts privacy, and ushers in a new AI era.
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BlackRock has highlighted quantum computing as a potential risk to Bitcoin’s long-term security in its recent Bitcoin ETF filing. The inclusion marks a rare mention of quantum risk in mainstream finance.
Bitcoin has been trading strongly, recently surpassing $105,000 before a slight pullback to around $103,000.
Quantum computing could theoretically break the cryptography that protects Bitcoin wallets, but experts stress this threat remains decades away. Bitcoin developers have been preparing for quantum resistance with upgrades like Taproot, and emerging cryptographic alternatives are already under testing.
The risk disclosure by BlackRock mainly follows SEC filing requirements rather than signalling imminent danger.
Bitcoin’s price momentum remains robust after breaking key resistance levels near $97,700. However, technical indicators like the RSI suggest the asset is approaching overbought conditions, which might lead to a short-term correction.
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Russian power engineers have found new ways to spot illegal crypto mining farms in areas with power shortages. In Dagestan, Rosseti and its local branch worked with internet providers to cut internet briefly and measure electricity drops.
The operation detected about 900 mining rigs using 3.2 MW—enough energy for 1,500 homes—even though fewer than 900 families live there.
Dagestan leads illegal crypto mining in the North Caucasus. Despite a winter ban until 2031, many miners operate year-round, avoiding proper electricity payments.
Officials estimate that illegal mining has cost the grid $5 million over three years, causing overloads and losses. Authorities want to expand mining bans and introduce harsher penalties, including possible criminal charges.
Some regions with spare power capacity may allow legal mining, but places like Irkutsk have banned it entirely until 2031. Experts say heavier fines and jail terms could be a stronger deterrent than current minor penalties.
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Kazakhstan is looking to modernise its energy system through digital mining. The government is also considering broader legalisation of crypto trading beyond its current regulatory zone.
Under a proposed ’70/30′ model, foreign investors would fund upgrades to thermal power plants, with 70% of the new energy routed to the national grid and 30% used by mining operations.
Kanysh Tuleushin, First Vice Minister of Digital Development, said the model mirrors practices in the United States, where miners consume surplus electricity to help stabilise supply.
He also suggested using leftover petroleum gas to power mining farms, cutting waste and boosting income for oil producers. The mining sector has contributed $34.6 million in tax revenue, registering over 415,000 devices and issuing 84 licences.
The government is working on plans to extend crypto trading beyond the Astana International Financial Centre (AIFC), which currently holds exclusive authority. Although trading within the AIFC reached $1.4 billion in 2024, the overall market is much larger and mostly unregulated.
Kazakhstan is additionally expanding the use of the digital tenge to ensure full transparency in public expenditure. The central bank has issued 250 billion digital tenge so far, using unique tags to trace how funds are spent.
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